This blog will go on for months to come to weed out Corporate misconducts as a service to the taxpayers and Malaysians in general.

Say No To Hudud

Wednesday, March 23, 2011

Will the truth about the PKFZ ever come out with PwC and Chin Kwai Fatt being involved in the audit?

“Most importantly, the government has not presented a detailed plan on how the cost of PKFZ project can be prevented from inflating to the expected RM12.5 billion per the report by PwC (accounting firm PricewaterhouseCoopers).

“We call upon the transport minister, who appears to be lost in wonderland, to immediately inform the Parliament and the public on how the government intends not only to implement policies of transparency and accountability to prevent future scandals, but also how it intends to end the agony facing a RM12.5 billion bill for the project,” he demanded. ~ Tony Pua in the Malaysian Insider

Chin Kwai Fatt, MD of PwC Malaysia. Till today he has not denied the fraud involving PricewaterhouseCoopers Consulting Sdn Bhd (464379-U)
and the bogus firm and directors of PwC Consulting Sdn Bhd (289801-A), or been made to answer them.

How can the truth about the PKFZ scandal ever come out when we have Chin Kwai Fatt as the man who verified that the "report was not tampered with and released in its entirety"?

Any defense lawyer worth his salt will be able to raise questions against Chin Kwai Fatt and PwC. So how will the courts and the people be able to accept the numbers that have been released?

"We have seen Chin Kwai Fatt rename and sell a company with 'sham directors', just to hide the contingent liabilities in PricewaterhouseCoopers Consulting Sdn Bhd (464379-U).

We have seen Chin Kwai Fatt hire a tainted auditor to audit the books for PricewaterhouseCoopers Consulting Sdn Bhd (464379-U).

We have seen how Chin Kwai Fatt finds it totally acceptable to say that PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) can meet its liabilities as and when they may fall due, when he does not even disclose the several hundred million Ringgit in contingent liabilities it has. He does this even when there is a sworn statement by the Chairman of PwC Malaysia, Dato Johan Raslan, that the Court of Appeal finds the plaintiffs claims against PricewaterhouseCoopers Consulting Sdn Bhd (464379-U) are not manifestly unsustainable, meaning that the chances for these contingent liabilities to fall due are there.

We have seen how Chin Kwai Fatt has done all these and more. And now they want to trust an audit report he has had a major role in to investigate the PKFZ?"

On what basis can any Public Prosecutor go ahead and argue his case when even the audit report on the PKFZ can be brought into question because of the actions of Chin Kwai Fatt & Co?

Until Chin Kwai Fatt is brought to answer the questions above, any 'scandals' or 'fraud' cases which are based upon the findings of PwC Malaysia and Chin Kwai Fatt & Co, will always be open to suspicion that the audit reports themselves might not be totally accurate.

" e-invest.com reported that, "the PKFZ audit report said that the project cost has ballooned from RM1.957 billion to a staggering RM12.453 billion since the inception of the free-trade zone in 2001.

According to the report prepared by PriceWaterhouse Coopers (PwC) - which was released today - the astronomical figure includes interest costs.The original estimated cost for the land purchase and development works in 2001 was RM1.957 billion... (the) project outlay has escalated to RM3.522 billion as at Dec 31, 2008.

Accompanying Lee to the press conference today was auditors PriceWaterhouse Coopers (PwC) managing director Chin Kwai Fatt and PwC partner, Lim San Pin.The two were there to verify that the publicly released report was not tampered with and released in its entirety.

Chin Kwai Fatt at the release of the PKFZ audit report.

However, Lee said that PwC normally does not grant permission for their reports to be made public and thus the firm was releasing the report with three conditions:

That the reader is not authorised to use or rely on the report to arrive at any conclusion.

PwC has prepared the report for PKA. Their duty of care is only to PKA and PwC does not owe a duty of care to any other party.